Moody's keep India's growth forecast unchanged at 7.6%

Moody's Investors Service has kept unchanged at 7.6 per cent the growth outlook for 2018 for the Indian economy, which is recouping from the impact of demonetisation and Goods and Services Tax (GST).

"There are some signs that the Indian economy is starting to recover from the soft growth patch attributed to the negative impact of the demonetisation undertaken in 2016 and disruption related to last year's rollout of the Goods and Service Tax," Moody's said. 

"The 2018 budget includes some measures that could stabilise the rural economy that was disproportionately hit by the demonetization policy and is yet to recover. As we have said before, the bank recapitalisation plan should also help credit growth over time, thereby supporting growth," it added.

"We have maintained our growth projections for ... India," it said.

Moody's kept India's growth forecast for 2019 unchanged at 7.5 per cent.